On Friday, Bitcoin lingered near the $66,000 mark, setting the stage for what could be its fourth straight week of losses as global financial markets continued to face pressure. Over the last 24 hours, the overall cryptocurrency market capitalization declined by approximately 1.67%, settling around $2.26 trillion.
Data from market sources reveals that Bitcoin is exhibiting an unusually high correlation with traditional financial assets, moving closely alongside the S&P 500 index (93%) and gold (91%). This trend highlights how expectations regarding interest rates and worldwide macroeconomic factors are increasingly influencing cryptocurrency price movements.
From Peak Levels to a Steep Decline
The current phase of Bitcoin’s consolidation follows a sharp downturn after reaching an all-time high near $126,000 in October 2025. The decline intensified on October 10th when geopolitical tensions escalated—most notably due to threats of imposing a 100% tariff on Chinese imports—triggering widespread liquidations. In just a few hours, about $19 billion worth of leveraged positions were erased as Bitcoin plunged over 14%, exacerbated further by technical issues at a major exchange.
Since hitting its peak value, Bitcoin has shed nearly half its worth and has repeatedly tested the critical psychological support level around $60,000 amid cooling institutional interest and ongoing macroeconomic uncertainties.
Warning Signs from Capitulation Patterns
Analysis based on blockchain data suggests that this recent drop ranks among some of the most significant capitulation events in Bitcoin’s history. Realized losses—which quantify coins sold below their original purchase prices—averaged roughly $2.3 billion over seven days during this period. This places it within one of the top three to five largest loss surges ever recorded in crypto markets. Similar spikes were observed during notable past crashes such as those in 2021, along with collapses linked to Terra-Luna and FTX in 2022 and corrections seen mid-2024.
Source: CryptoQuant
The majority of selling pressure seems driven by short-term investors who bought Bitcoin between $80,000 and $110,000 but are now offloading at substantial losses. Meanwhile long-term holders remain steadfast despite market volatility.
A Temporary Bounce or Prolonged Downtrend?
Historically speaking, sharp increases in realized losses have often been followed by brief price recoveries—and indeed recently we saw Bitcoin rebound from roughly $60,000 up toward nearly $71,000 after this capitulation phase ended. However analysts warn these rebounds can occur within broader bearish trends meaning that current stabilization might only represent a short-lived relief rally rather than signaling an enduring reversal upward.
Disclaimer: This article is intended solely for informational and educational purposes without offering any form of financial advice or recommendations whatsoever. Coin Edition assumes no responsibility for any losses resulting from actions taken based on content herein. Readers should exercise due diligence before making decisions related to investments or services discussed above.